THE RUPEE: dollar higher

The dollar was up against the rupee on the currency market during the week, ended on Saturday 17 March, 2012. In the interbank dealings, the rupee drifted lower versus the dollar, losing 10 paisa for buying at 90.75 and dropped by eight paisa for selling at 90.76.
On the open market, the rupee also depreciated in relation to dollar as it fell by 20 paisa for buying at 91.00 and slipped by 25 paisa for selling at 91.20, the rupee also shed eight paisa versus euro for buying at Rs 118.70 and lost 58 paisa for selling at Rs 119.70.
In the currency market, it was noted that the rupee resisted sharp fall against dollar amid lack of import payments and increased remittances from Pakistanis living abroad.
Remittances from overseas Pakistanis rose by 23.4 percent to 8.59 billion dollars in the first eight months of the 2011-12 fiscal year, compared with 6.96 billion dollars in the same period last year. In February, overseas Pakistanis sent 1.16 billion dollars.
Analysts expect some pressure on the rupee because of rising global oil prices and if the political, economical and law and order situation does not improve, it is most likely that the rupee may face tough time in the coming days. Oil was trading above 126 dollars a barrel these days.
As a result of high payment for oil and rising concerns for overall economic health, the rupee touched a record low of 91.28 versus dollar in January.
According to the Pakistan Bureau of Statistics (PBS) there was also rising concerns on the trade deficit, which widened by 41 percent to 14.6 billion dollars in the first eight months of the 2011/12 fiscal year, compared with 10.34 billion dollars in the same period the previous year.
According to the State Bank of Pakistan's (SBP) country's foreign exchange reserves rose to 16.39 billion dollars in the week ended on March 9 because of an increase in reserves held by commercial banks, compared with 16.34 billion dollars in the previous week.
INTERBANK MARKET RATES: On Monday the rupee managed to retain the weekend rising trend in relation to dollar, as it picked up 10 paisa for buying at 90.65 and gained nine paisa for selling at 90.68.
On Tuesday the rupee could not keep its supremacy over dollar, losing seven paisa for buying at 90.72 and shed six paisa for selling at 90.74.
On Wednesday the rupee dropped by five paisa in relation to dollar for buying and selling at 90.77 and 90.79.
On Thursday the rupee rose by four paisa in relation to dollar for buying and selling at 90.73 and 90.75.
On Friday the rupee inched down by two paisa against dollar for buying at 90.75 and it also shed one paisa for selling at 90.76.
OPEN MARKET RATES: On March 12, the rupee appreciated by 10 paisa versus dollar for buying at 90.80 and gained 15 paisa for selling at 90.95. The rupee rose by 16 paisa in terms of euro for buying and selling at Rs 118.62 and Rs 119.12.
On March 13 the rupee held rates versus dollar for buying at 90.80 while it dropped by 5 paisa for selling at 91.00. The rupee also lost its appreciation in terms of euro as it fell by 58 paisa for buying at Rs 119.20 and dropped by Rs 1.08 for selling at Rs 120.20.
On March 14 the rupee was unchanged in terms of dollar for buying and selling at 90.80 and 91.00. While, the rupee appreciated sharply versus euro for buying at Rs 118.21 and selling at Rs 118.71.
On March 15 the rupee shed five paisa in terms of dollar for buying and selling at 90.85 and 91.05. While, the rupee fell against euro, losing 19 paisa for buying at Rs 118.40 and it, however, gained 31 paisa fir selling at Rs 119.40.
On March 16 the rupee dropped 10 paisa versus dollar for buying and selling at 90.95 and 91.15. While, the rupee continued its slide against euro, losing 30 paisa for buying and selling at Rs 118.70 and Rs 119.70.
On March 17, the dollar inched up as rupee shed five paisa versus the greenback for buying and selling at 91.00 and 91.20. While the rupee retained its levels against euro for buying and selling at Rs 118.70 and Rs 119.70.
OVERSEAS OUTLOOK FOR DOLLAR: In the first Asian trade, dollar hit its highest level in nearly a month versus euro on Monday after last week's upbeat jobs data suggested the US economy may not be in dire need of further monetary stimulus from the Federal Reserve.
The euro struggled after facing what traders described as a buy-the-rumour-sell-the-fact fall on Greece's bond swap deal with private creditors which will clear the way for a new bailout.
Interbank buy/sell rates for taka against dollar: 81.75-81.78 (previous 81.75-81.77). Call Money Rates: 11.00-13.50 percent (previous 07.00-14.00 percent). The dollar was trading versus the Indian rupee at Rs 49.94, versus the Malaysian ringgit the greenback was at 3.0295 and the US currency was at 6.3232 against the Chinese yuan.
In the second Asian trade, the US dollar hovered just below a seven-week high against a basket of currencies, bolstered by expectations that a string of encouraging economic news should persuade the US Federal Reserve not to apply fresh stimulus, at least for now.
Interbank buy/sell rates for taka against dollar: 81.76-81.79 (previous 81.75-81.78) Call Money Rates: 11.00-14.00 percent (previous 07.00-14.00 percent).
The yuan ended little changed against dollar after the People's Bank of China (PBOC) set a slightly stronger midpoint for the currency, forcing investors to reassess views on how much Beijing will allow the yuan to weaken. Spot yuan closed at 6.3270 against dollar, almost unchanged from Monday's close of 6.3265.
In the third Asian trade dollar hit an 11-month high against yen and one-month high on euro on Wednesday, extending its gains after a modest brightening of the Federal Reserve's economic forecasts nudged traders to downplay expectations of further monetary easing.
Interbank buy/sell rates for taka against dollar on Wednesday: 81.75-81.80 (previous 81.76-81.79) Call Money Rates: 11.00-13.50 percent (previous 07.00-14.00 percent).
The yuan closed lower versus dollar on Wednesday, weakening 0.61 percent this month as the People's Bank of China (PBOC) pushed forward with more active two-way trading of the Chinese currency via its mid-point.
Spot yuan closed at 6.3323 against dollar, weaker than 6.3270 at Tuesday's close and dropping 0.61 percent from 6.2936 at the end of last month - about the same amount of loss the PBOC has permitted for its midpoint in the same period of time. The dollar was trading against the Indian rupee at Rs 49.92 and the greenback was at 3.0450 in terms of the Malaysian ringgit.
In the fourth Asian trade the dollar hit a fresh 11-month high against the and a one-month peak against euro, supported by growing optimism about the US economy and subsequent rises in US bond yields.
Interbank buy/sell rates for taka against dollar on Thursday: 81.75-81.80 (previous 81.75-81.80) Call Money Rates: 11.00-13.50 percent (previous 07.00-14.00 percent).
The yuan rose slightly versus dollar as traders believe the currency might soon see a floor after the central bank let the midpoint score its biggest 11-session loss since China set up the domestic foreign exchange market in 1994. Spot yuan closed at 6.3300 against dollar, almost flat from Wednesday's close of 6.3323.
The dollar was trading versus the Indian rupee at Rs 50.19 and the greenback was at 3.0550 against the Malaysian ringgit.
In the final Asian trade the rally in the dollar took a bit of a breather as traders booked profits on recent chunky gains ahead of key resistance levels, but the greenback's rally was seen intact in line with a brightening US economic outlook.
The dollar stood at 83.47 yen, having retreated from an 11-month peak of 84.19 hit on Thursday. Traders said some selling kicked in after the pair gained 1.2 percent this week and as it approached the 2011 high of 85.53.
At the weekend the dollar slumped broadly, halting a rally that had taken it to an 11-month high against yen and a one-month peak versus euro as tame US inflation data prompted investors to rethink expectations of higher interest rates.
A rise in Treasury bond yields after recent strong economic data reflected investors betting that the Federal Reserve may be more aggressive and tighten monetary policy sooner than anticipated, or at least push further stimulus off the table.